NewStar Announces Pricing of Senior Note Offering and Increases Size to $80 Million

Published 6:15 PM ET Mon, 9 Nov 2015
Globe Newswire

BOSTON, Nov. 09, 2015 (GLOBE NEWSWIRE) -- NewStar Financial, Inc. (Nasdaq:NEWS) ("NewStar") announced today that it priced its previously announced offering of senior notes, consisting of $80 million in aggregate principal amount of its 7.25% Senior Notes due 2020 (the "Notes"). The Notes will be issued as additional notes under the same indenture as the Company's $300 million of 7.25% Senior Notes due 2020 that were originally issued on April 22, 2015 (the "Existing Notes"), all of which remain outstanding. The Notes will be treated as a single class with the Existing Notes, and will have the same terms as and be fungible with the Existing Notes.

The Notes will be issued and sold at a price of 99.01% of face value (plus accrued interest from November 1, 2015). The proceeds, after the payment of fees and expenses, to NewStar of this offering are expected to be approximately $78.0 million (not including pre-issuance accrued interest). Subject to customary closing conditions, the closing of this offering is expected on or about November 13, 2015. NewStar intends to use the proceeds of this offering, after the payment of fees and expenses, for general corporate purposes.

J.P. Morgan Securities LLC is acting as sole book-runner for the offering.

The Notes are being offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) and declared effective on November 2, 2015. A prospectus supplement and the accompanying base prospectus relating to the notes will be filed with the SEC. You may obtain these documents, when available, for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may also be obtained from J.P. Morgan Securities LLC at the following address: 383 Madison Avenue, New York, New York, 10179, or by calling 1-866-803-9204.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements:

This press release includes "forward-looking statements", including statements regarding the completion of NewStar’s offering of senior notes, which are statements other than statements of historical fact. These forward-looking statements involve a number of risks and uncertainties. There can be no assurance as to the completion or timing of the offering. Among the important factors that could cause actual results to differ materially from those results indicated in the forward-looking statements include uncertainties relating to market conditions for corporate debt securities generally and for the securities of companies in our industry and for NewStar in particular.

Additional information about these and other risk factors can be found in NewStar's filings with the Securities and Exchange Commission, including Item 1A ("Risk Factors") of our 2014 Annual Report on Form 10-K , as amended.